Deutsche Börse Group has enhanced its securities lending services by linking a new agency lending service by Clearstream with Eurex Repo and Eurex Clearing. The new offering combines several elements of the broad Deutsche Börse value chain.
The joint new service is already available with first users reaching readiness. It offers customers advantages in terms of capital efficiency, straight-through-processing and potential higher returns for lenders as they can maximise the yield on their assets in a low-risk environment.
The transaction between the lenders and the borrowers is managed by Clearstream as the agent lender and tri-party collateral agent via the Global Liquidity Hub. Eurex Repo’s SecLend market with its broad pan-European GC Pooling client base is the trading venue while Eurex Clearing will provide instant clearing as the central counterpart to both the lenders and the borrowers.
“This new agency lending service via CCP offers lenders an additional source of revenue by reaching out to different borrowers compared to our well-established principal model ASLplus. Our joint agency lending service is perfectly suited to large, fixed-income lenders who are looking for a secured and centrally cleared solution”, says Pascal Morosini, Global Head of GSF Sales, Clearstream.
“This joint effort will be beneficial for the liquidity and attractiveness of our electronic SecLend market. Especially the full automation of this service with complete straight-through processing is a unique feature and appreciated by our users to increase trading efficiency,” says Frank Gast, Managing Director Eurex Repo.
“Eurex Clearing's innovative membership model allows Clearstream’s customers direct CCP access under our specific lender license providing the basis for improved economics for lenders and borrowers by reducing capital costs,” adds Matthias Graulich (pictured), Chief Client Officer of Eurex Clearing.
